Income Limits Rise For Ssi Students, Disabled

SOCIAL SECURITY Dale Koppel

Good news for students younger than 22 who are receiving SSI (Supplemental Security Income) and earning some income.

It used to be that only up to $400 of earned income (from wages or self-employment) per month was not counted when determining eligibility. (The maximum yearly exclusion was $1,620.)

Now (as of Jan. 1), the monthly excluded amount has jumped to $1,290 with a maximum yearly exclusion of $5,200, which is what the Social Security Administration is figuring a student may realistically earn in part-time or summer employment.

The other good news is that these figures will be automatically adjusted annually, based on increases in the cost-of-living index.

Good news, also, for people who are collecting disability benefits and want to test their ability to return to the workplace without losing their benefits (including their health care coverage).

As of Jan. 1, thanks to former President Clinton, the amount that a disability beneficiary can collect during the nine-month trial work period has increased from $200 per month to $530 per month. If after the trial period, earnings are less than the $740, full benefits will generally continue.

As of Jan. 1, as well, the amount of money earned that's considered "substantial gainful activity" has increased from $700 to $740 per month, a reflection, according to the Social Security Administration, of increases in the national average wage index.

The Social Security Administration, by the way, defines a person with a disability as someone who, due to the onset of a mental or physical condition that is expected to last more than a year or result in death, is no longer able to earn a substantial wage (i.e., engage in "substantial gainful activity"). That person must also have earned enough Social Security credits from prior work history to qualify for disability benefits. According to the SSA, there are about 5 million people receiving disability benefits, plus about 1.6 million members of their families are receiving monthly benefits. More than 6 million people are receiving SSI benefits based on financial need, including 900,000 disabled children.

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